BEIJING, March 9 (Reuters) - Broad M2 money supply is no longer a very accurate measure of credit conditions in China, People’s Bank of China Governor Zhou Xiaochuan said on Friday.

Zhou, speaking on the sidelines of the annual parliament session, also said China faces no difficulties in opening “Southbound” trade through its Bond Connect scheme with Hong Kong.

The trading link, launched in the middle of last year, permits eligible institutional investors in Hong Kong and overseas to buy and sell onshore bonds without a quota through what is termed “Northbound” trade.

Southbound trade, which would allow mainland investors access to offshore markets, is currently not allowed. (Reporting by Kevin Yao, Se Young Lee and Yawen Chen; Editing by Kim Coghill)